Make UK Warns of Catastrophic Effect of No Deal Brexit

The
Brexit referendum has been one of the biggest events in the modern
history of the UK, and as the March 29 deadline draws near, the
anxiety is rising in the country as no deal has yet been agreed with
the European Union. A ‘no deal’ Brexit has been widely panned as
a chaotic solution that will plunge the country into an economic
black hole, and in a new development, UK’s biggest manufacturing
body Make the UK called it a potentially ‘catastrophic prospect.’

Judith
Hackitt, the head of Make UK, made these comments ahead of the
association’s yearly conference. These comments come in the wake of
Honda’s decision to close its plant in Swindon by 2022 and earlier
this year, another Japanese carmaker Nissan, announced that it would
not make the X-Trail SUV in its plant in Sunderland. Hackitt blamed
politicians and warned that a ‘no deal’ Brexit is going to be a
disaster. She said, “Some of our politicians have put selfish
political ideology ahead of the national interest and people’s
livelihoods and left us facing the catastrophic prospect of leaving
the EU next month with no deal.”

As
far as manufacturers are concerned, the attraction of the UK as a hub
was quite attractive before the concerns regarding Brexit and the
prospect of fresh trade terms came into the picture. For Japanese
carmakers like Nissan and Honda, the UK provided them with an
excellent manufacturing center, while at the same time giving them
access to the common market in Europe.

If
there is no deal in place once Brexit comes into effect, then those
companies would no longer have access to that common market, and
naturally, the UK will no longer remain a manufacturing hub of choice
for a range of companies. The British lawmakers rejected Prime
Minister Theresa May’s deal with the European Union, and there is
not much time left for the country when it comes to reaching an
actual agreement with the EU. If the UK eventually leaves the EU with
no deal in place, then products from the country will be subject to
customs checks, and it is yet unclear what sort of tariffs are going
to be imposed. In addition to that, the global economic slowdown, the
trade war between the United States and China and the shrinking
demand all over the world is also going to have a big effect on the
manufacturing sector in the UK. If the sector is then subjected to a
‘no deal’ Brexit, then it could well turn out to be a
catastrophe.

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